Facts about PSUs

May 20, 2018

A state-owned enterprise in India is called a public sector undertaking. These companies are owned by the union government of India. Public sector undertakings (PSUs) in India, for long, have had troubles conducting their recruitment processes with more than 100,000 students taking the exams for less than 1000 jobs. The PSU companies fulfill all expectations of young engineers as: Handsome salary, Job security, Job satisfaction, Real time growth, Technical job and other livelihood facilities, which everyone should wish to grab this high class job for their career. PSU also give time to time opportunities to earn master and doctored degree to their valuable employees which definitely enhance their practical technical knowledge to deliver outstanding products to the common people of their country.
Various PSUs have been awarded additional financial autonomy. These companies are “public sector companies that have comparative advantages”, giving them greater autonomy to compete in the global market so as to “support [them] in their drive to become global giants”. Financial autonomy was initially awarded to nine PSUs as Navratna status in 1997.
In 2010, the government established the higher Maharatna category, which raises a company’s investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore. The Maharatna firms can now decide on investments of up to 15 per cent of their net worth in a project while the Navaratna companies could invest up to Rs 1,000 crore without explicit government approval. Two categories of “Miniratnas” afford less extensive financial autonomy.

Guidelines for awarding ratna status are as follow:

Maharatna Eligibility :

Three years with an average annual net profit of over Rs. 2500 crore (earlier was 5,000 Cr), OR Average annual Net worth of Rs. 10,000 crore for 3 years (earlier was 15,000 Cr), OR Average annual Turnover of Rs. 20,000 crore for 3 years (earlier was 25,000 Cr)

Benefits for investment

Rs. 1,000 crore – Rs. 5,000 crore, or free to decide on investments up to 15% of their net worth in a project

List of Maharatna PSU’s

Name of Company Recruitment Procedure
Coal India Limited GATE
Indian Oil Corporation Limited GATE
NTPC Limited GATE
Oil & Natural Gas Corporation Limited (ONGC) GATE
Steel Authority of India Limited (SAIL)
GAIL (India) Limited GATE
Bharat Heavy Electrical Limited (BHEL) GATE

Navratna

Eligibility :

A score of 60 (out of 100), based on six parameters which include net profit, net worth, total manpower cost, total cost of production, cost of services, PBDIT (Profit Before Depreciation, Interest and Taxes), capital employed, etc., and a company must first be a Miniratna and have 4 independent directors on its board before it can be made a Navratna.

Benefits for investment

Up to Rs. 1,000 crore or 15% of their net worth on a single project or 30% of their net worth in the whole year (not exceeding Rs. 1,000 crores).

List of Navratna PSU’s

Name of Company Recruitment Procedure
Bharat Electronics Limited (BEL-India) GATE
Bharat Petroleum Corporation Limited (BPCL) GATE
Hindustan Petroleum Corporation Limited HPCL GATE
 National Aluminium Company Limited(NALCO) GATE
Neyveli Lignite Corporation Limited GATE
Power grid corporation GATE
National Buildings Construction Corporation GATE
Engineers India Ltd GATE
HAL india
MTNL (mahanagar telecom limited)
Power Finance Corporation Limited
Rashtriya Ispat Nigam Limited
Shipping Corporation of India Limited
Container Corporation of India

Miniratna Category-I

Eligibility :

Have made profits continuously for the last three years or earned a net profit of Rs. 30 crore or more in one of the three years.

Benefits for investment

Up to Rs. 500 crore or equal to their net worth, whichever is lower.

List of Miniratna PSU’s Categeory-I

Name of Company Recruitment Procedure
Container Corporation of India Limited GATE
Mazagaon Dock Limited GATE
National Fertilizers Limited GATE
NHPC Limited GATE
RITES Limited GATE
Telecommunications Consultants India Limited GATE
Airports Authority of India
Balmer Lawrie & Co. Limited
Bharat Dynamics Limited
Bharat Sanchar Nigam Limited
Bridge & Roof Company (India) Limited
Central Warehousing Corporation
Central Coalfields Limited
Chennai Petroleum Corporation Limited
Cochin Shipyard Limited
Dredging Corporation of India Limited
Ennore Port Limited
Garden Reach Shipbuilders & Engineers Limited
Goa Shipyard Limited
Hindustan Copper Limited
HLL Lifecare Limited
Hindustan Newsprint Limited
Hindustan Paper Corporation Limited
Housing & Urban Development Corporation Limited
India Tourism Development Corporation Limited
Indian Railway Catering & Tourism
Corporation Limited (IRCTC)
IRCON International Limited
KIOCL Limited
Mahanadi Coalfields Limited
Manganese Ore (India) Limited
Mangalore Refinery & Petrochemical Limited
Mishra Dhatu Nigam Limited
MMTC Limited
MSTC Limited
National Seeds Corporation Limited
Northern Coalfields Limited
Pawan Hans Helicopters Limited
Rashtriya Chemicals & Fertilizers Limited
SJVN Limited
Security Printing and Minting Corporation of India Limited
South Eastern Coalfields Limited
State Trading Corporation of India Limited
THDC India Limited
Western Coalfields Limited
WAPCOS Limited

Miniratna Category-II

Eligibility :

Have made profits continuously for the last three years and should have a positive net worth.

Benefits for investment

up to Rs. 300 crore or up to 50% of their net worth, whichever is lower

List of Miniratna PSU’s Categeory-I

Name of Company Recruitment Procedure
M E C O N Limited GATE
Bharat Pumps & Compressors Limited GATE
Broadcast Engineering Consultants (I) Limited GATE
Central Mine Planning & Design Institute Limited GATE
Ed.CIL (India) Limited GATE
Engineering Projects (India) Limited GATE
Ferro Scrap Nigam Limited
HMT (International) Limited
HSCC (India) Limited
India Trade Promotion Organisation
Indian Medicines & Pharmaceuticals Corporation Limited
National Film Development Corporation Limited
National Small Industries Corporation Limited
P E C Limited
Rajasthan Electronics & Instruments Limited